Question
Why is Balance Sheet prepared?
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Answer
Balance Sheet is the statement prepared after preparing Trading and Profit and Loss Account. Balance Sheet is “a statement which sets out the assets and liabilities of a firm or an institution as at a certain date.”
In the words of Francis R. Stead. "A Balance Sheet is a screen picture of the financial position of a going business at a certain moment."
In the words of Francis R. Stead. "A Balance Sheet is a screen picture of the financial position of a going business at a certain moment."
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Following balances appear in the Trial Balance of a firm as on $31^{st}$ March, $2019$:
Prepare Trading Account of the firm.
→|
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₹
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|
Opening Stock:
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Raw Material
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80,000
|
|
|
Finished Goods
|
1,40,000
|
|
Purchases
|
|
3,60,000
|
|
Sales
|
|
7,00,000
|
|
Returns:
|
Purchases
|
10,000
|
|
|
Sales
|
6,000
|
|
Wages
|
|
1,30,000
|
|
Factory Expenses
|
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90,000
|
|
Freight:
|
Inwards
|
20,000
|
|
|
Outwards
|
30,000
|
|
At the end of the accounting period, stock was:
|
|
|
|
Raw Materials
|
|
70,000
|
|
Work-in-Process
|
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20,000
|
|
Finished Goods
|
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1,10,000
|
On 10th March, 2019, A draws on B a bill at 3 months for ₹ 20,000 which B accepts immediately and returns to A. The bill is honoured due date.
Pass necessary Journal entries in the books of both the parties.
Pass necessary Journal entries in the books of both the parties.
The following are the extracts from the trial balance of M/s Bhola & Sons as on March 31, 2017
Closing Stock as on date was valued at ₹ 3,00,000.
You are required to record the necessary journal entries and show how the above items will appear in the trading and profit and loss account and balance sheet of M/s Bhola & Sons.
Closing Stock as on date was valued at ₹ 3,00,000.
You are required to record the necessary journal entries and show how the above items will appear in the trading and profit and loss account and balance sheet of M/s Bhola & Sons.
The following transactions took place during the week ended 28th May, 2019. How will you record them in the Petty Cash Book which was maintained with a weekly 'float' of ₹ 3,000?
| 2019 | ₹ | |
| May 23 | Postage | 400 |
| May 24 | Casual labour | 500 |
| May 24 | Taxi hire | 600 |
| May 26 | Note pads and registers | 800 |
| May 27 | Cartage | 200 |
| May 28 | Bus fare | 300 |
Pass Journal entries rectifying the following errors:
- A cheque for ₹ 10,000 was received from Ranjan on which ₹ 200 Cash Discount was allowed. The cheque was not honoured on due date and the amount of discount was credited to Discount Received Account.
- ₹ 2,000 paid as wages for machinery installation was debited to Wages Account.
- ₹ 5,000 received from Rakesh were credited to his Personal Account. The amount had been written off as bad debts earlier.
- Repair bill of machinery was recorded as ₹ 100 against the bill amount of ₹ 1,000.
In the following Bank Reconciliation Statement. determine the missing amounts: